Although Jersey and Guernsey have different legal systems, renewed scrutiny of offshore jurisdictions could be pushing the Channel Island rivals into closer co-operation, writes Lucy Fisher

The scrutiny of offshore jurisdictions as part of a wider clampdown on aggressive tax avoidance in the run-up to this summer’s G8 meeting acted as something of a catalyst for renewed talks about co-operation between offshore islands. For the Channel Islands, this also meant renewed talk about a potential confederation, something that is raised every now and then but, for the time being, remains academic. While Jersey and Guernsey are both crown dependencies and lie less than 25 miles apart, they also have differing legal systems and integration or amalgamation would be far from straightforward.